What effect does the $BTC heatmap reveal? Signs indicate that an upcoming break-out could be extremely strong.

Bitcoin is currently hovering around $68.11K, forming a quite distinctive price zone when observing the liquidity heatmap. From a technical perspective, this situation indicates that the market is undergoing an accumulation phase, where the effects of demand and supply forces create a dangerous equilibrium state.

Accumulated Liquidity - Pressure Effects from Two Key Price Zones

Looking at the liquidity heatmap, two prominent areas stand out immediately. Above, from approximately 72K to 74K, there is a significant volume of orders waiting to be filled. This is where take-profit orders from long holders or stop-loss orders from short traders are concentrated. The psychological effect here is very clear — as the price approaches, many orders will be triggered simultaneously, causing rapid market volatility.

Support Zone 55K–60K: The Focal Point of Cascading Liquidation Effects

Below, the area from 60K down to 55K carries an even more dangerous characteristic. This is where leveraged long positions are concentrated — a tool that amplifies profits but also increases risks. If the price drops below this level, a liquidation cascade effect could be triggered. When positions are automatically liquidated, the system will sell en masse, causing the price to fall even faster, which in turn triggers more liquidations. This is a chain reaction — each step downward exerts pressure to push the price further down.

The Pinch State - When the Market Is in a No-Man’s Land

Bitcoin is currently caught between these two pressure zones, creating what analysts often call a “squeeze.” During such periods, the market often chooses to move sideways to accumulate more liquidity. But what’s very important is that once this pressure is released, the breakout effect tends to be very strong. The market at this point is like a compressed spring — the longer it is compressed, the more energy it releases when it springs back.

Two Different Development Scenarios

If the price breaks above the 72K–74K zone, it could signal that $BTC is sweeping out the short positions’ stop-losses, creating a positive effect for long traders. Conversely, if the price drops below 60K, the liquidation effect is likely to be triggered, unexpectedly pushing out the capital of optimistic traders.

Risk Management Tips for New Traders

For newcomers to the market, the most important thing is not to guess the correct direction — whether $BTC will go up or down. Instead, it’s crucial to be aware that the current price zone is not an ideal place to use high leverage. Once a breakout occurs, it can happen very quickly and with great intensity. Just one wrong liquidity sweep can wipe out an account rapidly.

The appropriate strategy now is to preserve capital, make small trades, always set clear stop-loss orders, and absolutely avoid FOMO (fear of missing out). Trading discipline and patience are the best tools to protect your finances in a market that is currently uncertain.